Many Years ago while I was still little - about 7 years of age, I remember my dad had run successfully a string of gas stations for close to 5 years. Later, business began to stagnate and profits dip - my mum advised to sell off the business but because it was his first successful business, he was adamant, blamed poor performance on the general economic slow down. He injected a lot of stimulus money into the business and in spite of it all, profits dipped further. My mum identified management as the sole source of problems but he never saw it that way. He continued to unknowingly lose a lot of money to station managers. After three years of bad business he accepted to change the business model upon receiving similar advice from a trusted friend. He re-structured the company, appointed new management who turned the fortunes around. Several months down the road, profits hit six digit figures again. Unbelievably, business stagnated for 3 years and yet the power to change its course was his all along! He simply failed or feared to make game changing key decisions in those 3 years!
Life is one hell of a bumpy road and a myriad of tough situations are bound to come your way. The decisions you take during such difficult times might as well turn out to be a game changer or catastrophic! Every so often, it may not be about a difficult situation you are dealing with; for instance, having to give up a good paying job to get married and move in with your husband can equally present a tough choice! No matter what your circumstances are, what counts ultimately is making timely key decisions! Occasionally, key decisions mighty be pretty straight forward, in other cases not that much requiring consultation and counsel. Don't be afraid to seek guidance, and when you do, keep your head above the water! The decision is still yours to make! A seemingly obvious key decision might equally turn out to be difficult to embrace simply because for instance;
1. You are afraid to fail: In circumstances where your legacy or track record as a manager is at stake, making decisions that deviate from the norm can be a daunting task, harder than braving the open seas even if logic defeats reason!
2. You are afraid of the unknown: I know not of many people who would be willing to delve into private business because they consider it "uncharted waters". Most Venture Capitalists or angel investors prefer to inject cash into a proven business - a business that has potential to succeed from their perspective. It may seem understandable since often times the sums involved are quite significant! Risk and get burned so they say!
3. You are afraid of leaving your comfort zone: You could be complacent with the current size and level of profits from your business and consequently reluctant to expand. Or perhaps you are in the employment world and afraid of quitting your current job for self-employment or for a new job; even though the rewards are not commensurate with the work you do. From experience, normally things go wrong when least expected. Nature always seems to side with the hidden flaw according to Murphy's laws. So it is always wise to perceive change as a new window of opportunity if exploited diligently! Be receptive and open to change! Who knows, you could land a "juicier" job or be the next founding father of a successful start-up!
4. You are ill-informed: There is nothing as puzzling as being faced with a difficult or critical decision and not knowing what to do! This happens very often in our daily lives, at workplaces, businesses and even in our homes. The end result is either a bad decision emanating from miss information or delayed action for lack of it.
5. You are under pressure: Some managers would defer decisions however befitting they are for the circumstances at hand and opt for decisions favored by the general established company framework out of fear of a back clash and undue criticism.
I'm certain most of us have been through this at some point - at least I have. Many years back I had started an IT company while still working with a telecom firm but was afraid of quitting my job to consolidate my company. The uncertainties surrounding my young company seemed immense and insurmountable. So I clung onto my monthly paycheck in oblivion like a tick! Two years later, the telecom firm I worked for, was acquired essentially rendering me jobless, with no money and with a failed company! This is when I realized I had missed making a defining key decision at some point.
In as much as making key decisions about situations is important, knowing when to make them is utterly critical! So when do you know it's time to make that key decision?
1) When the outcome does not tally with set targets
An outcome is an end result achieved after a process. Trying to direct efforts towards a specified and quantifiable outcome, as much as possible in all undertakings, is paramount. If it's a business venture, the mark up margin or sales turnover should be deterministic and reconcilable against a preset profit or sales margin. Variances observed from the set target must be followed up with immediate corrective action.
2) When no desired outcome has been achieved within a preset timeline
Any outcome that is not time bound normally turns out to be unnecessarily resource consuming and untenable. For instance, setting realistic targets in business for specified timelines is critical and if not achieved within the given time-frame, it could be a signal to change strategy. In the same light, if you plan to marry someone's daughter, set the date to that effect and act upon it lest you risk being dumped for making promises you can not keep!
3) When achievement does not tally with set goals
A goal is an envisioned desirous outcome of a planning and execution process. Setting realistic achievable goals is equally important while setting performance targets. If the goal is to expand a business by 50 new stores across the country within a year, due consideration could be made for the available capital and labor as the main modulators for this particular goal. At the end of the year an assessment on the progress, evaluation of successes and failures be made, to strategize for a better outcome over the next financial period.
4) When boredom creeps in
It could be a business you are getting tired of because of low profit margins, general loss of interest, etc. Or sometimes, the job you have is less rewarding, too repetitive and less challenging. All this and many more can subsequently make you less excited or interested with prolonged tenure. In this state mind, performance and innovation is unduly inhibited. To re-invigorate your spirits, a more involving job or business should be sought to spark innovation and creativity!
5) When complacency sets in
I 'm sometimes amazed by Warren Buffet. At 82, coupled with what he has achieved, you would imagine his desire to achieve and succeed more has dwindled. It turns out his desire to succeed is much more than ever before. Last year, he invested more than $500M dollars in Sunchor - a Canadian oil company, equivalent to a staggering 17.8 million shares. A good lesson to learn!
I have always told my family that I will never stop working until I achieve a debt free home. This seems like top of the ceiling measure for success but what happens in the event I achieve this in the short run? Do I stay home and enjoy my sweat? That is when I will probably lose it all. A fool with his money are soon parted!
No comments:
Post a Comment